Business Maverick: Tesla blocked from shunting sex harassment suit into arbitration

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Tesla Inc must keep defending itself in open court against claims that female employees face “rampant sexual harassment” in its largest California factory, a California judge ruled, spurning the company’s request for closed-door arbitration.

Alameda County Superior Court Judge Stephen Kaus ruled on Monday that the female worker who filed the complaint can proceed in court – even though she signed an arbitration agreement giving up her right to sue.Tesla has come under fire from shareholder activists who have pushed the electric-vehicle maker’s board, so far without success, to adopt more transparency about its diversity goals and use of arbitration to resolve complaints regarding sexual harassment and racial discrimination.

A federal law banning employers from forcing workers to arbitrate sex harassment claims was signed into law by President Joe Biden in March, but the measure doesn’t cover complaints before it was enacted.that she experienced “nightmarish” conditions as a night-shift worker at Tesla, with co-workers and supervisors repeatedly making lewd comments and gestures to her. When she complained to supervisors and human resources, they failed to take action, Barraza said.

David Lowe, an attorney representing Barraza, told Kaus at a March hearing that the arbitration agreement was unlawful and “unconscionable” under California law. Tesla sought arbitration only for the allegations Barraza made under California’s employment discrimination laws, and not for her claims under a separate state law pertaining to labor violations.

 

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The system is now targeting the man at the top, who dares to challenge the order of things. Expect one hit piece after another. ELONGATE

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